Downloads to cost more

The problem-haired joybringer George Osborne is bringing in new laws making sure that internet downloads are taxed in the country they are purchased.

This means, that Apple and Amazon will have to charge the UK's 20% rate of VAT. The current situation they are allowed to sell digital downloads via places like Luxembourg, where the tax rate is as low as 3%.

This will affect books, music and apps and comes in from January 1 2015.

His budget document said:

"As announced at budget 2013, the government will legislate to change the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services. From 1 January 2015 these services will be taxed in the member state in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue."

2013 saw singles ales at their highest for years, so after 2015 consumers are going to go the extra to obtain their music. Or maybe they'll not bother and riot instead.

4 comments

2 years agoDougal1709

Or perhaps Apple could very slightly reduce their ridiculously high profit margin, but no, let's blame the government for making them pay their fair share of tax because it's not possible that Apple the choice of all the fluffy, right on creatives could be greedy corporate behmoth.

If the content is digital your address doesn't matter people will purchase from Amazon.com using a tax free state as their address.
In fact if its physical under EU law we don't pay VAT on imports from Europe. I don't mind waiting an extra day for my 20% off products to come from mainland Europe.
Amazon will just downsize its warehousing in the UK and run it from a more tax efficient country.